September, 2017

IR Presentation

Mitsubishi UFJ Financial Group, Inc.

2

This document contains forward-looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) and its group companies (collectively, “the group”). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by MUFG and the other companies comprising the group, including the latest kessantanshin, financial reports, Japanese securities reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document.

In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed.

The financial information used in this document was prepared in accordance with Japanese GAAP (which includes Japanese managerial accounting standards), unless otherwise stated. Japanese GAAP and U.S. GAAP, differ in certain important respects. You should consult your own professional advisers for a more complete understanding of the differences between U.S. GAAP and Japanese GAAP and the generally accepted accounting principles of other jurisdictions and how those differences might affect the financial information contained in this document. This document is being released by MUFG outside of the United States and is not targeted at persons located in the

United States.

Consolidated : Mitsubishi UFJ Financial Group (consolidated)

Non-consolidated : Simple sum of Bank of Tokyo-Mitsubishi UFJ (non-consolidated) and

Mitsubishi UFJ Trust & Banking Corporation (non-consolidated)

Commercial Bank Consolidated : Bank of Tokyo-Mitsubishi UFJ (consolidated)

Definitions of figures used in this document

3

29.56

39.94 47.54 *3

58.99

68.29 73.22

68.51 68.28

0

20

40

60

80

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Management index

612.05 604.58 678.24

800.95 893.77

1,092.75 1,121.06

1,137.77

0

200

400

600

800

1,000

1,200

End Mar10

End Mar11

End Mar12

End Mar13

End Mar14

End Mar15

End Mar16

End Mar17

6 6 6 6 7 9 9 9 9

6 6 6 7 9

9 9 9 9

0

5

10

15

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17(Forecast)

Year-end divivend

Interim dividend

ROE Dividend per share / Dividend payout ratio

BPS

Dividend

payout

ratio

EPS

4.9%

6.6% 7.4%*2

8.0% 8.1% 7.4%

6.2% 6.0%

4.92%

6.89% 7.75%*2

8.77% 9.05% 8.74%

7.63% 7.25%*1

0%

5%

10%

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

JPX basis MUFG basis

(Consolidated)

(¥)

*1

30.0% 40.6% 22.0% 26.3% 23.4% 24.6%

(¥)

*1

*2 11.10%(MUFG basis), 10.6%(JPX basis) before excluding negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

*3 ¥68.09 before excluding negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

*4 17.6% before excluding negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

{(Total shareholders' equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period)

+(Total shareholders' equity at the end of the period + Foreign currency translation adjustments at the end of the period)}÷2

Profits attributable to owners of parent ×100

26.4%

(¥) 25.2%*4 25.4%

4

Financial targets of the current mid-term business plan

FY14 FY17 Target FY16

Growth EPS (¥) ¥73.22 Increase 15% or

more from FY14 ¥68.28

Profitability

ROE 8.74% Between 8.5-9.0% 7.25%

Expense ratio 61.1% Approx. 60% 64.6%

Financial

strength

CET1 ratio

(Full implementation)*1 12.2% 9.5% or above 11.9%

(Excluding an impact of net unrealized gains (losses) on available-for-sale securities) 9.8%

*1 Calculated on the basis of regulations to be applied at end Mar 19

5

Contents

Outline of FY2017 Q1 Results 6

• Key points of FY2017 Q1 7

• Income statement summary 8

• Balance sheets summary 9

• Loans / Deposits 10

• Domestic deposit/lending rate 11

• Non-JPY assets and funding 12

• Investment securities 13

• Bond portfolio management 14

• Expense 15

• Asset quality 16

• Capital 18

• Financial results of MUSHD 19

• Financial results of MUN / ACOM 20

• Financial results of MUAH / Krungsri 21

• Financial results of Morgan Stanley and 22

major collaborations

• FY2017 financial targets 23

Growth Strategy 33

• Support wealth accumulation and stimulation of 34

consumption for individual clients

• Contribute to growth of SMEs 36

• Reform global CIB business model 37

• Evolve sales and trading operations 39

• Develop global asset management and 40

investor services operations

• Further reinforce transaction banking business 41

• Strengthen commercial banking platforms 42

in Asia and the United States

• ICT strategy 44

Corporate Governance 54

MUFG Re-Imagining Strategy – Building Anew at MUFG 24

• Dividend forecast 48

• Capital policy 49

• Outline of repurchase and cancellation of own shares 50

• Reduction of equity holdings 51

• Capital management 52

Capital Policy 47

Appendix 60

6

Outline of FY2017 Q1 Results

7

BTMU 130.9

MUTB 65.1

MUAH*2 25.1

KS*3 14.7

MUSHD 9.8

MUN 21.3

ACOM 6.5

MS*4 37.3

Others*5 (22.0)

0

50

100

150

200

250

300

350

(¥bn)

Breakdown of FY17 Q1 profits attributable to owners of parent*1

*1 The above figures take into consideration the percentage holding in each

subsidiary and equity method investee (after-tax basis)

*2 MUFG Americas Holdings Corporation

*3 Bank of Ayudhya (Krungsri)

*4 Including the loss on change in equity

*5 Including cancellation of the amount of inter-group dividend receipt and equity

method income from other affiliate companies

Profits attributable to owners of parent was ¥289.0 bn (increased ¥100.1 bn from FY16 Q1) • Progress rate was 30.4% of ¥950.0 bn annual target

• ¥20.0 bn total credit cost was posted • Whereas net business profits remained almost flat,

profits attributable to owners of parent increased mainly due to net gains on equity securities and profits from investments in affiliates

Major Actions • Announced “MUFG Re-Imagining Strategy

– Building Anew at MUFG”

• Resolved to make MUN a 100% owned subsidiary through Simplified Share Exchange

• Decided functional realignment of group management and rename of commercial bank name

• Strengthened the framework to promote digitalization

• In addition to US, expanded integrated operation model in primary business to EMEA and Asia

• Established “MUFG Basic Policy for Fiduciary Duties”

Shareholder return and others • FY16 dividend was ¥18 per common stock. FY17 dividend

forecast remains the same

• Repurchased ¥100.0 bn own shares • Established a policy regarding cancellation of own shares and

cancelled a part of own shares accordingly • Approximately ¥29.0 bn equities holdings were sold

on acquisition costs basis

• Elected two outside directors from Asia and North America

MUFG Consolidated

289.0

Key points of FY2017 Q1 (Consolidated)

8

(¥bn) FY16 FY17Q1 YoY

1 Gross profits

(Before credit costs for trust accounts) 4,011.8 1,004.3 6.6

2 Net interest income 2,024.4 462.5 (39.5)

3 Trust fees + Net fees and

commissions 1,450.5 327.6 (0.3)

4 Net trading profits + Net other

operating profits 536.7 214.1 46.5

5 Net gains (losses) on debt securities 56.8 91.2 18.7

6 G&A expenses 2,593.5 655.2 11.8

7 Depreciation 316.4 78.7 3.0

8 Net operating profits 1,418.2 349.0 (5.1)

9 Total credit costs*1 (155.3) (20.0) 35.4

10 Net gains (losses) on equity securities 124.9 24.2 22.5

11 Net gains (losses) on sales of equity

securities 127.4 27.6 9.5

12 Losses on write-down of equity

securities (2.5) (3.3) 13.0

13 Profits (losses) from investments in

affiliates 244.4 68.0 6.9

14 Other non-recurring gains (losses) (271.4) (23.8) (3.0)

15 Ordinary profits 1,360.7 397.4 56.6

16 Net extraordinary gains (losses) (57.5) (20.9) 33.9

17 Total of income taxes-current and income taxes-deferred

(342.1) (62.3) (1.6)

18 Profits attributable to owners of parent 926.4 289.0 100.1

19 EPS (¥) 68.28 21.59 7.82

*1 Credit costs for trust accounts + Provision for general allowance for credit losses + Credit costs (included in non-recurring gains / losses) + Reversal of allowance for credit losses + Reversal of reserve for contingent losses included in credit costs + Gains on loans written-off

Income statement summary

Net operating profits • Gross profits almost unchanged. While net interest

income decreased mainly due to a decrease in net interest income from domestic loans and deposits as well as from bond portfolio, net trading profits and net other operating profits increased

• G&A expenses increased, reflecting higher expenses in overseas, in addition to the depreciation of JPY against other currencies

• Net operating profits decreased by ¥5.1bn from FY16Q1 to ¥349.0bn

Total credit costs*1 • Total credit costs decreased on a consolidated basis,

while reporting net reversal on a non-consolidated basis

Net gains (losses) on equity securities • Net gains on sales of equity securities increased mainly

driven by a progress in sales of equity holdings, as well as a decrease in losses on write-down of equity securities

Profits (losses) from investments in affiliates • Profits from investments in Morgan Stanley increased, as

well as profits from other affiliates increased

Profits attributable to owners of parent • As a result, profits attributable to owners of parent

increased by ¥100.1bn from FY16Q1 to ¥289.0bn

(Consolidated)

9

*1 Non-consolidated + trust accounts

*2 Excluding loans to government and governmental institution

*3 Loans booked in overseas branches, MUAH, KS, BTMU (China), BTMU (Malaysia) and

MUFG Bank (Europe)

*4 Non-consolidated

Balance sheets summary

Loans (Banking + Trust accounts)

• Decreased from the end of March 2017 mainly

due to decreases in loans to domestic corporate

and governmental institutions

Investment securities

• Decreased from the end of March 2017 mainly

due to a decrease in Japanese government bonds,

partially offset by an increase in foreign bonds

Deposits

• Increased mainly due to an increase in individual

deposits as well as overseas deposits

Net unrealized gains on available-for-sale

securities

• Net unrealized gains on available-for-sale

securities increased mainly due to an increase in

those of domestic equity securities, which was

partially offset by a decrease in those of Japanese

government bonds

(¥bn)

End Jun

17

End Mar

17

Change

from End

Mar 17

1 Total assets 304,221.6 303,297.4 924.2

2

Loans

(Banking + Trust accounts) 108,710.4 109,209.4 (499.0)

3 Loans (Banking accounts) 108,477.3 109,005.2 (527.8)

4 Provision for loan loss (916.1) (957.3) 41.1

5 Housing loans*1 15,617.4 15,720.2 (102.8)

6 Domestic corporate loans*1*2 43,929.8 44,297.4 (367.6)

7 Overseas loans*3 43,581.5 43,418.6 162.8

8

Investment securities

(Banking accounts) 59,301.7 59,438.8 (137.1)

9 Domestic equity securities 6,228.8 5,980.9 247.9

10 Japanese government bonds 22,114.6 25,111.5 (2,996.8)

11 Foreign bonds 21,588.0 19,129.8 2,458.2

12 Total liabilities 287,499.8 286,639.0 860.8

13 Deposits 171,505.9 170,730.2 775.6

14

Individuals*4

(Domestic branches) 74,344.0 73,093.3 1,250.7

15 Corporations and others*4 59,735.4 61,050.3 (1,314.9)

16 Overseas*4 21,375.6 20,696.5 679.0

17 Total net assets 16,721.4 16,658.3 63.3

18 Net unrealized gains (losses)

on available-for-sale securities 3,353.7 3,139.0 214.6

(Consolidated)

10

70.4 70.7 71.0 71.2 73.0 74.3

47.4 47.4 52.7 56.2 61.0 59.7

35.4 36.2 37.1 34.0 36.5 37.4

153.3 154.4 160.9 161.6

170.7 171.5

0

50

100

150

End Mar15

End Sep15

End Mar16

End Sep16

End Mar17

End Jun17

Overseas andOthers

Domesticcorporate, etc.

Domesticindividual

15.8 15.6 15.5 15.6 15.7 15.6

42.4 42.7 43.8 43.4 44.2 43.9

7.9 9.7 10.1 5.5 4.2 4.0

41.7 42.4 43.0 38.9 43.4 43.5

1.5 1.3 1.3 1.3

1.5 1.5

109.4 111.9 113.9 105.0

109.2 108.7

0

50

100

End Mar15

End Sep15

End Mar16

End Sep16

End Mar17

End Jun17

Consumerfinance / Others

Overseas

Government

Domesticcorporate

Housing loan

Loan balance ¥108.7 tn

(decreased by ¥0.4 tn from Mar 17)

<Breakdown of Change>

• Housing Loan (¥0.1 tn)

• Domestic Corporate*1 (¥0.3 tn)

Excl. Impact of foreign exchange fluctuation (¥0.3 tn)

• Government (¥0.2 tn)

• Overseas*2 +¥0.1 tn

Excl. Impact of foreign exchange fluctuation +¥0.2 tn

(¥tn)

*1 Excluding lending to government and governmental institutions, and including foreign

currency denominated loans

*2 Loans booked in overseas branches, MUAH, KS, BTMU (China), BTMU (Malaysia)

and MUFG Bank (Europe)

*3 Sum of banking and trust accounts

Loans / Deposits

(¥tn)

Loans (Period end balance)*3

Deposits (Period end balance)

*2

*1

Deposit balance ¥171.5 tn

(increased by ¥0.7 tn from Mar 17)

<Breakdown of Change>

• Domestic Individual +¥1.2 tn

• Domestic Corporate, etc. (¥1.3 tn)

• Overseas and Others +¥0.8 tn

Excl. Impact of foreign exchange fluctuation +¥1.0 tn

(Consolidated)

11

0.94% 0.91% 0.89% 0.89% 0.87%

0.92% 0.89% 0.88% 0.87% 0.86%

0.02% 0.01% 0.01% 0.01% 0.01%0.6%

0.8%

1.0%

1.2%

FY15Q1

FY16Q1

FY17Q1

Lending rateDeposit/lending spreadDeposit rate

0.46% 0.46% 0.45% 0.46% 0.45%

0.69% 0.68% 0.68%0.66% 0.63%

0.4%

0.6%

0.8%

FY15Q1

FY16Q1

FY17Q1

Large corporate

SME

Floating rate, 48%

Fixed rate, 18%

Prime rate,3%

Personal loans, 31%

0.98% 0.98% 0.97% 0.97% 0.96%

FY15Q1

FY16Q1

FY17Q1

0.8%

0.9%

1.0%

Ref. Overseas corporate lending spread*4

Changes in domestic deposit/lending rate*1

Domestic corporate lending spread*1

Domestic JPY denominated lending*1*2*3

Domestic deposit/lending rate (Non-consolidated)

0.0%

*1 Managerial accounting basis. Excluding lending to government etc. *2 As of end Jun 17*3 Excluding domestic non-JPY denominated lending etc. *4 Excluding MUAH, KS

12

資産 負債

Loans

346

Investment securities

89

Interbank mkt operations

56

Others

43

Customer

deposits

229

Mid-long

term funding

171

Interbank mkt operations

(Incl. Repos)

73

CD / CP

61

Incl. deposits from

central banks

Incl. corporate bonds

and currency swaps

Non-JPY assets and funding

As of end Jun 17 (US$ bn)

Non-JPY balance sheet (BTMU managerial basis Excl. MUAH, KS) Non-JPY funding in stable and efficient manner

Customer deposits now cover 60-70% of non-JPY loans.

To further increase deposits, we will enhance product

development and sales capabilities

With mid-long term funding through corporate bond

issuances and currency swaps, all non-JPY loans are

fully funded

• Corp bonds are mainly issued from HoldCo (MUFG) to

ensure stable funding and TLAC compliance

(see pages 52 – 53 for details)

• Ccy swaps are transacted mainly in medium-term durations

The SPC for holding non-JPY liquid assets was

established as a buffer against the possibility of a severe

funding situation due to temporary market stress

Assets Liabilities

(Commercial bank consolidated)

(Ref: USD-JPY 5Y ccy swap spreads) (bp)

13

12.7 11.3 10.7 10.1 13.8 11.0

14.1 11.0

8.6 7.2 6.3

6.6

5.7

5.4 5.7

4.8 2.7

2.6

2.5

2.4 3.2

3.3 2.1 1.8

35.1

30.2 28.3

25.5 25.1 22.1

0

10

20

30

40

EndMar 15

EndSep 15

EndMar 16

EndSep 16

EndMar 17

EndJun 17

Within 1 year 1 year to 5 years

5 years to 10 years Over 10 years

Securities available for sale with fair value Unrealized gains (losses) on securities available for sale

(¥tn)

JGB duration*2 Balance of JGBs by maturity*1

*1 Securities available for sale and securities being held to maturity. Non-consolidated

(¥tn) (year)

3.2 3.3

4.0 3.9

2.6 2.8

0

1

2

3

4

5

EndMar 15

EndSep 15

EndMar 16

EndSep 16

EndMar 17

EndJun 17

2.93 2.46 2.20 2.04

2.63 2.90

0.32

0.31 0.71 0.69

0.39 0.28

0.87

0.31 0.56

0.67 0.10 0.15

4.13

3.09

3.48 3.40 3.13

3.35

0

1

2

3

4

EndMar 15

EndSep 15

EndMar 16

EndSep 16

EndMar 17

EndJun 17

Domestic equity securities Domestic bonds Others

Investment securities (Consolidated / Non-consolidated)

Balance Unrealized gains (losses)

(¥bn) End Jun 17

Change

from

End Mar 17 End Jun 17

Change

from

End Mar 17

1 Total 54,635.3 (177.8) 3,353.7 214.6

2

Domestic equity

securities 5,401.4 236.8 2,904.4 269.2

3 Domestic bonds 24,822.4 (2,866.3) 289.6 (109.4)

4

Japanese

government

bonds 21,013.7 (2,996.8) 248.6 (102.4)

5 Others 24,411.3 2,451.7 156.9 54.9

6

Foreign equity

securities 187.1 4.3 53.8 3.9

7 Foreign bonds 20,399.4 2,482.1 10.1 18.6

8 Others 3,824.8 (34.7) 95.6 32.2

*2 Securities available for sale. Non-consolidated

14

(0.4)

(0.2)

0.0

0.2

0.4

0.6

0.8

1.0

1.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

15/4末 15/7末 15/10末 16/1末 16/4末 16/7末 16/10末 17/1末 17/4末

US bond 10Y (LHS)

JP bond 10Y (RHS)

Bond portfolio management

0

10

20

30

40

EndJun 15

EndSep 15

EndDec 15

EndMar 16

EndJun 16

EndSep 16

EndDec 16

EndMar 17

EndJun 17

Domestic bond Foreign bond

Balance of bond portfolios (consolidated)

（%）

Long-term yield (Japan & USA) Bond portfolio management

Equity holdings Excess deposit

in Yen B/S

• Reduced the balance of foreign bonds last fiscal year from the perspective of interest rate hike risk.

Manage portfolio flexibly while carefully monitoring interest rate fluctuations

Secure stable financial income

Bond & equity

integrated

management

Domestic & foreign

bond integrated

management

Methodology：

Flexible portfolio management that accommodates

changes in the market environment

（%）

(Non-consolidated)

Purpose：

Environment：

←目盛り貼り付け

（¥tn）

Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17

15

2.09 2.28 2.58 2.58 2.59

0.65

57.6% 60.9% 61.1% 62.3% 64.6% 65.2%

0

1

2

3

FY12 FY13 FY14 FY15 FY16 FY171Q

(¥tn)

G&A expenses / expense ratio*1

*1 Expense ratio＝G&A expense / gross profits (before credit cost for trust accounts) *2 FY17H1

*3 Includes expense associated with employees providing support services to BTMU

*4 Financial expense is excluded from gross profits. Expenses related to loan losses and others and repayment expense are excluded from expenses

*5 Local currency basis *6 Excl. intergroup intermediation charges *7 Excl. expenses associated with overseas Japanese Corporate Banking business

Changes in expenses by business segment*5

5.4

(9.0)

34.6

11.2

14.3

FY15 Retail JapaneseCorporateBanking

GlobalBanking

IS / AM GlobalMarkets

FY16*6

*7

Expense

＜Major reasons of changes by business segment＞

Retail: System integration of MUN

Global Banking: Increased regulatory cost and expanded business volume

IS / AM: Acquisition of fund administration subsidiaries

Global Markets: Development of S&T business by BTMU-MUS

in an integrated manner

Expenses in major group companies

(¥bn)

FY17

1Q

Expense

ratio YoY

BTMU + MUTB combined (¥bn) 333.5 2.8 57.8%

MUAH (US GAAP)*2・3 (US$mm) 1,623 91 71.7%

KS (Thai GAAP)*2 (THBmm) 23,287 2,818 47.2%

MUSHD consolidated (¥bn) 73.6 ▲4.8 88.3%

MUN*4 (¥bn) 62.5 0.5 89.8%

ACOM*4 (¥bn) 22.1 0.5 36.6%

(Consolidated)

16

0.09%

0.30%

0.62%

0.90%

0.44%

0.23%

0.13%

(0.01%)

0.15% 0.22%

0.14% 0.0%

0.3%

0.6%

0.9%

(200)

0

200

400

600

800Written-off (Net)

Credit cost ratio

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 （FY17）

(0.3%)

(0.6%)

(0.9%)

Asset quality

– Historical credit costs

Total credit costs*1 / Credit cost ratio*2

*1 Consolidated. Including gains from write-off. Negative figure represents profits

*2 Total credit costs / loan balance as of end of each fiscal year

*3 Net amount of write-off gains and write-offs

Average credit cost ratio after FY06

(¥bn)

*3

Total credit costs*1

(Consolidated)

155.3

255.1

161.6

115.6

193.4

354.1

760.1

570.1

261.7

75.6

(11.8)

160.0

*2

FY17Q1：20.0

• Credit costs for FY17Q1 were ¥20.0 bn. Total credit costs forecast for FY17 are ¥160.0 bn.

17

27.4 23.5 54.9 46.4 47.0

1,046.6 811.4

1,110.5

738.1 716.7

50.0

51.0

51.6

46.3 46.8

581.3

653.8

438.7

708.3 637.7

1,705.5

1,539.9

1,655.8

1,539.2

1,448.3

1.67%

1.40% 1.45%

1.41% 1.33%

0%

1%

2%

3%

4%

0

500

1,000

1,500

2,000

EndMar 14

EndMar 15

EndMar 16

EndMar 17

EndJun 17

Restructured loans

Accruing loans contractually past due 3 months or more

Non-accrual delinquent loans

Loans to bankrupt borrowers

% to Total loans and bills discounted

1,375.2 1,242.0 1,177.1

1,064.7 979.9

89.0

108.8 145.3

142.3 153.6

114.9

100.7 199.4

216.0 217.5

126.3

88.2

133.9

116.0 97.2

1,705.5

1,539.9

1,655.8

1,539.2

1,448.3

0

500

1,000

1,500

2,000

EndMar 14

EndMar 15

EndMar 16

EndMar 17

EndJun 17

EMEA Americas Asia Domestic

Risk-monitored loans by region*2

(¥bn) (¥bn)

*1 Risk-monitored loans based on Banking Act. Excluding direct write-off

*2 Based on the locations of debtors

*3 Total risk-monitored loans / total loans and bills discounted

*4 Allowance for credit losses / total risk-monitored loans

Risk-monitored loans / ratio*3 / allowance ratio*4

Asset quality

– Non-performing loans*1

Allowance

ratio*4 55.02% 64.66% 63.86% 62.19% 63.25%

(Consolidated)

18

(¥bn)

End

Mar 17

End

Jun 17

Change from

end Mar 17

1 Common Equity Tier 1 capital ratio 11.76% 11.92% 0.15ppt

2 Tier 1 capital ratio 13.36% 13.49% 0.12ppt

3 Total capital ratio 15.85% 15.93% 0.08ppt

4 Common Equity Tier 1 capital 13,413.8 13,568.9 155.0

5 Retained earnings 9,278.5 9,446.6 168.0

6 Other comprehensive income 2,369.1 2,353.0 (16.0)

7 Regulatory adjustments (1,363.2) (1,367.4) (4.1)

8 Additional Tier 1 capital 1,818.6 1,785.5 (33.0)

9

Preferred securities and subordinated

debt 1,650.2 1,650.7 0.5

10

Foreign currency translation

adjustments 111.6 81.5 (30.0)

11 Tier 1 capital 15,232.4 15,354.4 121.9

12 Tier 2 capital 2,843.6 2,784.1 (59.5)

13 Subordinated debt 2,132.6 2,091.7 (40.8)

14 Amounts equivalent to 45% of unrealized

gains on available-for-sale securities 277.8 296.9 19.1

15 Total capital (Tier 1+Tier 2) 18,076.1 18,138.5 62.4

16 Risk weighted assets 113,986.3 113,799.5 (186.8)

17 Credit risk 96,906.3 93,893.9 (3,012.4)

18 Market risk 2,135.7 2,005.9 (129.8)

19 Operational risk 6,734.5 6,688.6 (45.8)

20 Transitional floor 8,209.7 11,211.0 3,001.3

Common Equity Tier 1 ratio

• Full implementation basis*1 : 12.0%

• Excluding impact of net unrealized gains

(losses) on available-for-sale-securities : 9.7%

Risk weighted asset

(Down ¥0.1 tn from Mar 17)

• Credit risk : (¥3.0 tn)

• Market risk : (¥0.1 tn)

• Operational risk : (¥0.0 tn)

• Transitional floor : +¥3.0 tn

Leverage ratio

• Transitional basis : 4.81%

Capital (Consolidated)

*1 Calculated on the basis of regulations applied at the end of Mar 19

19

Financial results of Mitsubishi UFJ Securities Holdings（MUSHD）

Results of MUSHD Results of MUMSS*3

(¥bn) FY16 FY17Q1 YoY

1 Net operating revenue*1 295.0 61.4 (0.3)

2 SG&A expenses 242.6 58.6 2.4

3 Operating income 52.4 2.8 (2.7)

4 Ordinary income 53.8 3.1 (2.7)

5 Profits attributable to owners of parent

34.4 1.8 (1.6)

• Compared to overseas business, domestic business struggled due to sluggish customers’ activities on the back of low-vol market and the rise of

geopolitical risks. Both sales and profit decreased on YoY basis, mainly due to the reduction of the earnings of affiliates and the exclusion of

MUSA from consolidation from FY16Q3

(¥bn) FY16 FY17Q1 YoY

(Reference*2 )

FY17Q1

1 Net operating revenue*1 379.2 83.3 (4.2) 99.5

2 Commission received 173.2 36.8 (2.8)

3 Equity brokerage 39.0 9.8 1.0

4 Underwriting and

secondary distribution 36.6 4.5 (5.5)

5 Sales of investment

trusts 35.6 8.7 1.0

6 Other fees received 61.9 13.7 0.6

7 Net trading income 179.1 36.9 (5.6)

8 Stocks 29.2 7.0 21.2

9 Bonds and other 149.9 29.8 (26.8)

10 SG&A expenses 315.1 73.6 (4.8) 85.4

11 Transaction expenses 98.4 22.0 (1.1)

12 Operating income 64.1 9.7 0.6

13 Non-operating income 35.4 5.4 (6.9)

14 Equity in earnings of

affiliates 29.2 3.9 (5.9)

15 Ordinary income 99.5 15.1 (6.3) 19.5

16 Profits attributable to

owners of parent 49.0 9.8 (5.0) 12.4

Net operating revenue of domestic securities firms (FY17Q1)

Rank Security firm(s)

Amount

(¥bn)

1 Nomura Securities 148.4

2 MUMSS*3 (incl. MUMSPB) + MSMS + kabu.com 87.0*4

3 SMBC Nikko Securities 79.3

4 Daiwa Securities 73.0

5 Mizuho Securities 58.1

(Source: Company disclosure)

*1 Operating revenue minus financial expenses

*2 Figures represent the simple aggregation with MUFG Securities Americas’ result

*3 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) with Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd. (MUMSPB) consolidated

*4 Simple total of MUMSS, Morgan Stanley MUFG Securities Co., Ltd. (MSMS) and kabu.com Securities Co., Ltd

MSMS is one of the securities joint ventures between MUFG and Morgan Stanley in Japan and is an associated company of MUSHD accounted for by using the equity-method

20

0

100

FY09Q1 FY10Q1 FY11Q1 FY12Q1 FY13Q1 FY14Q1 FY15Q1 FY16Q1 FY17Q1

Results of MUN

(¥bn) FY16 FY17Q1 YoY

1 Operating revenue 275.2 70.5 3.1

2 Card shopping 189.0 48.6 2.4

3 Card cashing 24.5 5.7 (0.6)

4 Loan revenue 5.2 1.1 (0.2)

5 Operating expenses 281.7 69.6 3.1

6 G&A expenses 256.5 63.4 0.3

7 Credit related costs 14.1 6.1 2.7

8 Provision for loss on interest

repayment 11.1 - -

9 Operating profit (6.5) 0.9 0.0

10 Ordinary profit (5.9) 0.9 (0.0)

11 Profits attributable to owners of parent (28.1) 25.1 24.0

12 Interest repayment*1 18.9 4.3 (0.5)

Results of ACOM

0

100

FY09Q1 FY10Q1 FY11Q1 FY12Q1 FY13Q1 FY14Q1 FY15Q1 FY16Q1 FY17Q1

(¥bn) FY16 FY17Q1 YoY

1 Operating revenue 245.1 63.4 3.5

2 Operating expenses 315.3 45.4 4.0

3 G&A expenses 89.5 22.1 0.5

4 Provision for bad debts 68.5 20.1 4.1

5 Provision for loss on

interest repayment 143.7 0.0 0.0

6 Operating profit (70.1) 18.0 (0.4)

7 Profits attributable to owners of parent (72.1) 16.3 (0.8)

9 Guaranteed receivables 1,129.7 1,161.6 139.7

10 Unsecured consumer loans

(Non-consolidated) 777.5 783.9 17.8

11 Share of loans*3 32.8% ‐ ‐

12 Interest repayment*1 68.8 16.3 (1.4)

<Requests for interest repayment*2>

*1 Including waiver of repayment

*2 Requests for interest repayment in FY09Q1 = 100

*3 Share of the receivables outstanding excluding housing loans (non-consolidated) in consumer finance industry

<Requests for interest repayment*2>

Financial results of MUN/ACOM

• MUN: Q1 operating revenue increased from the same period of last FY, profits attributable to owners of parent increased mainly

due to posting an deferred tax assets

• ACOM: Operating revenue and operating income were roughly the same level as last FY, due to the steadily growth of

guaranteed receivables business and unsecured consumer loans business

21

<BS>

(US$mm) End

Dec16

End Jun 17 Change

14 Loans 77,551 78,388 837

15 Deposit 86,947 84,957 (1,990)

16 Total equity 17,386 17,937 551

17 Total asset 148,144 150,556 2,412

18 NPL ratio 0.89 % 0.63% (0.26ppt)

19 NPL coverage ratio 92.69% 103.14 10.45ppt

Financial results of MUAH / Krungsri

Results of MUAH*1*2

• MUAH： Net income was $524 mm, up $128mm compared with FY16H1, due to an increase in NII driven by an increase in NIM and a reversal of provision for credit losses • Krungsri: Increase in non-interest income as well as increase in NII driven by a growth of loans outstanding contributed to increase in net profit

<P/L>

(US$mm) FY16

FY17

H1 YoY

1 Net interest income 3,053 1,589 111

2 Interest income 3,716 2,010 197

3 Interest expense 663 421 86

4 Total non-interest income 2,225 977 (62)

5 Trading account activities 105 (7) (75)

6 Investment banking and syndication

fees 312 182 42

7 Fees from affiliates*3 957 430 (40)

8 Total revenue 5,278 2,566 49

9 Non-interest expense*4 3,782 1,963 89

10 Pre-tax, pre-provision income 1,496 603 (40)

11 Provision for loan losses 155 (52) (175)

12 Net income attributable to MUAH 990 524 128

13 NIM 2.23% 2.36% 0.21ppt

*1 Financial results as disclosed in MUAH’s statuary report based on U.S. GAAP *2 Figures have been revised to include the results of the transferred IHC entities, such as MUSA (MUFG Securities Americas) *3 Represents income resulting from the business integration of BTMU & MUB *4 Includes expense associated with employees providing support services to BTMU

*5 Financial results as disclosed in Krungsri’s financial report based on Thai GAAP

Results of Krungsri*5

<P/L>

(THBmm) FY16

FY17

H1 YoY

1 Net interest income 61,977 33,421 3,173

2 Interest income 85,925 46,186 4,225

3 Interest expense 23,948 12,765 1,052

4 Net fees and services income 18,175 9,307 456

5 Fees and services income 24,142 12,552 827

6 Fees and services expense 5,967 3,245 371

7 Non-interest and non fees income 11,335 5,791 471

8 Other operating expense 43,080 23,287 2,818

9 Pre-provision operating profit 48,407 25,232 1,282

10 Impairment loss of loans and debt securities

21,314 10,682 13

11 Net profit attribute to owners of the bank 21,404 11,516 1,097

12 NIM 3.74% 3.82% 0.04ppt

<BS>

(THBmm) End

Dec 16

End

Jun 17 Change

13 Loans 1,506,222 1,538,256 32,034

14 Deposit 1,108,288 1,163,312 55,024

15 Total equity 208,768 216,992 8,224

16 Total asset 1,883,188 1,888,531 5,343

17 NPL ratio 2.21% 2.24% 0.03ppt

18 NPL coverage ratio 143.3% 143.6% 0.30ppt

22

Major collaborations

Equity Underwriting (Apr 16- Mar 17)

Rank Bookrunner

# of

Deals AMT (￥bn) Share (%)

1 Nomura 101 795.3 24.0

2 SMBC Nikko 160 694.0 20.9

3 MUMSS 73 508.8 15.3

4 Mizuho 127 443.1 13.4

5 Daiwa 93 369.8 11.2

M&A Advisory (Apr 16- Mar 17)

Rank Financial Advisor

# of

Deals AMT (￥bn) Share (%)

1 Mizuho FG 183 6,997.6 35.4

2 MUMSS 43 5,348.8 27.0

3 GS 26 5,262.5 26.6

4 Lazard 21 5,050.5 25.5

5 The Raine Group LLC 2 4,136.1 20.9

Acquisition of Joy Global by Komatsu • MUMSS acted as FA to Komatsu Ltd. in its approx. $3.7 bn acquisition of Joy

Global

Acquisition of StanCorp Financial Group by Meiji Yasuda Life Insurance • MUMSS acted as sole FA to Meiji Yasuda in its approx. $5.0 bn acquisition of

StanCorp

Global IPO by Kyushu Railway Company • MUMSS acted as Joint Global Coordinator and MUMSS/MS acted as Joint

Bookrunner for both the domestic and international tranches in JR Kyushu’s

approx. ¥ 416 bn global IPO

Acquisition of Tumi by Samsonite • MS and MUFG acted as Joint Lead Arranger and Joint Bookrunner in

Samsonite’s acquisition finance of $2.43 bn

*1 Over ¥ 50bn, excluding J-REIT deals

*2 Based on U.S. GAAP

• FY17H1 net revenue and net income increased YoY driven by robust performance in investment banking and wealth management

• Leveraging the MUFG-MS alliance, the Joint Venture acted as Bookrunner for both the domestic and international tranches in all of

13 large global IPOs*1 by Japanese companies since 2010

Financial results of Morgan Stanley and major collaborations

Morgan Stanley Financial results*2

Any Japanese involvement announced (Source) Thomson Reuters (Source) Thomson Reuters

FY16

FY17

(US$mm) H1 YoY

1 Net revenue 34,631 19,248 2,547

2 Non-interest expenses 25,783 13,798 1,318

3 Income from continuing operations

before taxes 8,848 5,450 1,229

4 Net income applicable to MS 5,979 3,687 971

5 Earnings applicable to MS

common Shareholders 5,508 3,427 946

6 ROE 8.0% 9.9% 2.7ppt

23

• FY17 consolidated profits attributable to owners of parent target is ¥950.0 bn

FY2017 financial targets

2

3

(¥bn) <Financial target, etc.> <Results>

[MUFG consolidated] FY17 FY16

Interim Full year Interim Full year

1 Total credit costs (70.0) (160.0) (57.6) (155.3)

2 Ordinary profits 670.0 1,390.0 794.8 1,360.7

3 Profits attributable to owners of parent 440.0 950.0 490.5 926.4

(BTMU： for reference)

4 Net business profits before provision for general allowance for credit losses

300.0 580.0 417.0 666.9

5 Total credit costs (20.0) (30.0) (4.7) (25.4)

6 Ordinary profits 280.0 570.0 410.2 632.2

7 Net income 200.0 420.0 323.0 481.4

(MUTB： for reference)

8 Net business profits before credit costs for trust account and provision for

general allowance for credit losses

95.0 175.0 92.7 181.4

9 Total credit costs (5.0) (10.0) 1.7 (22.5)

10 Ordinary profits 100.0 175.0 105.5 164.4

11 Net income 75.0 130.0 75.7 120.2

MUFG Re-Imagining Strategy – Building Anew at MUFG

24

25

• Provide customers, employees, shareholders, and all stake holders with the best value through an integrated group-

based management approach that is simple, speedy and transparent

• Also aim to achieve sustainable growth and contribute to the betterment of society by developing solutions-oriented

businesses

Fully launch

Apr 18 －

Design detail /

partially launch

－ Mar 18

Decided direction

May 17

Cost reduction

¥120 bn

Gross profits

¥180 bn

Net operating profits

¥300 bn ＝ ＋

MUFG Re-Imagining Strategy – Building Anew at MUFG

1. Strengthening our management approach based on customer-

and business-based segments

(1) Further Wealth Management strategy

(2) Reinforce business with large companies with group-unified

service and global platform

(3) Accelerate Asset Management business

(4) Enhance Payment Platform

(note) Figures are rough estimation in FY23

2. Business transformation through the use of digital technology

(1) Improve customer convenience

(2) Business process reengineering

(3) Reform customer interface channels domestically and

globally

3. Initiatives to improve productivity

(1) Strategically review portfolio of existing investment in affiliates

(2) Optimizing human resource allocation on a group-basis

(3) Working-Style reforms(increase time to face customers)

4. Reorganization of MUFG group management structure

(1) Integrate corporate loan-related business of BTMU and MUTB

• Establish the most suitable formation to service our

corporate clients as one group

• Clarify the mission and responsibility of each group member

(2) Strengthen AM and IS businesses - New trust banking model

• Accelerate AM and IS businesses as growth area for group

• Make MUKAM a wholly owned subsidiary of MUTB

(3) Review customer segmentation

• Integrate Japanese retail banking and SME segments

• Reorganize Japanese large corporate and global corporate

segments respectively, each of which is managed globally

across geographical boundaries

(4) Establish the framework to promote our digital strategy

• Appoint a Chief Digital Transformation Officer(CDTO)

• Establish Digital Transformation Division

(5) Reinforce retail payment business

• Make MUN a wholly owned company of MUFG

(6) Rename the commercial bank as “MUFG Bank”

26

• Provide seamless “Comprehensive financial services” where MUFG has an advantage

• Promote (1) “Total Asset Advisory WM” of cross-sell various solutions through asset/corporate ownership

succession, (2) “Tailor-Made WM” of setting financial instruments sales as the core

• Strengthen collaboration with corporate finance team for business owners

Customer

Bank Trust Bank Securities

Tailor-Made WM

Total Asset Advisory WM

Satisfy various range of customer

needs such as financial

instruments investment, loans and

real estate together with

asset/corporate ownership

succession

Satisfy individual needs of

customers concentrating on

financial instruments investment

Drive portfolio management business

Accelerate collaboration with MUMSS and PB security

Share best practice of PB style business promotion among group

Develop advisory function of asset and corporate succession

Consolidate Products Offices for asset/corporate ownership succession

to be shared among the group

Improve an appeal for High-End owner

Bring together persons in charge of High-End segment customers within

group

Concentrate group-wide expertise to respond to various customer needs

Expand product-line up

Reinforce loan, investment products sales and real estate business from

WM business-oriented perspective

Officially start fee based advisory services

Business promotion model by segment Areas to be enhanced

Create MUFG Wealth Management Brand

Hig

h-E

nd

Needs

Se

mi-H

igh

-En

d

Afflu

en

t

Busin

ess o

wners

/Land o

wners

/rich in

financia

l assets

Needs

Needs

Co

llabo

ratio

n o

f Re

tail B

ankin

g U

nit a

nd

Ja

pa

ne

se C

orp

ora

te B

ankin

g U

nit

Operating profit

¥50 bn

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Further Wealth Management strategy

27

27

Strengthen customer- and business-based

approach beyond boundary of regions

Strengthen our capabilities to respond to the needs of large

companies with business-based approach on a global basis

Strengthen customer- and business-based

approach beyond boundary of group entity

Each entity exerts expertise and establish the formation to

seamlessly provide comprehensive financial services

Commercial Bank Trust Bank Securities

Trust Bank will focus on its domestic and global AM/IS business,

which is one of the most important growth segments for MUFG,

and strengthen its real estate business, pension service,

shareholder service and estate administration service, thereby

integrating its high level of expertise with MUFG’s wide customer

base and developing a “trust business-oriented consulting and

solution business”

EMEA KS Japan

Large Japanese

Corporate

Large Global

Corporate

（Non-Japanese）

SME・Retail

Primary office in Japan takes initiatives

Leveraging MUFG expertise

Globally integrated business operation

Bank Securities

Become our customers’ best partner

by enhancing their corporate value

Redefine business areas enabling

further strategic human resources allocation

Strengthen the framework to promote businesses with large corporate customers

Asia

Transfer MUTB’s corporate loan-related businesses

to BTMU (Apr 18)

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Reinforce business with large companies with group-unified service and global platform

Americas

Review employee

appraisal system

Expand human

resources exchange

Clarify the mission

and responsibilities of

each entity

28

28

Make MUN a wholly owned subsidiary of MUFG

Mid-to-long term outlook

【Contribution on profits 】

Effect of boosting profits （FY24, ¥ bn）

Structural reform 10.0

System integration 20.0

Strategic initiatives 5.0 - 10.0

Total 35.0 - 40.0

MUN will become a wholly owned subsidiary of MUFG to

accelerate MUN’s structural reform and to pursue group synergies

• Strengthen strategic alliance with The Norinchukin Bank.

Transfer strategic planning function of JA Card business

to a newly established company, and enhance collaborations

• Expand payment business positioning MUN as a payment platform of MUFG

51%

Norinchukin MUFG

New entity MUN

Planning of

JA Card, etc. 49%

15% stake in MUN

Cash

Planning of

JA Card, etc.

Future vison of retail payment business

Individual customers Corporate customers

Cu

rren

t F

utu

re

Payment platform of MUN （New systems and business base after integration）

Card issuing （incl. trustee of business

operation）

Payment solution （payment via terminals, EC

and cloud）

＋

MUFG’s digitalization

Unification

Mobile Wallet

Payment business

for IoT

Open API

Point alliance

Database business

(utilizing AI)

Virtual/digital

currency

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Enhance payment platform

29

29

Framework for promoting digitalization

• Incorporate new technologies and best practices free off preconceptions and thereby establish new businesses and

operational processes that are more sustainable

• Appoint Chief Digital Transformation Officer（CDTO） and establish Digital Transformation Division to take the lead in

promoting our digital strategy

• Also, establish Digital Transformation Committee to deliberate various policies

XXXXXXXXXXX

XXXXXXXXX

CEO

CIO

Opera

tions

(Refo

rm o

pera

tion p

rocesses)

システム

システム B

usin

ess g

roups

Digital

Transformation

Committee

CDTO

Digital Transformation Division

Appoint

CDTO

Future direction

Improve customer convenience

Simpler operation for employees (Business process/Working-style reform)

Culture of “Let’s give it a try”

Heads of

business unit

Operating profit

¥200 bn

Establish “Digital

Transformation

Committee”

Establish “Digital

Transformation Division”

Cu

sto

me

rs

Business process

User (customers/employees)

-oriented UX

Realize “Simple”

and “Speedy”

Review

processes

based on

data

・・・ ・・・

・・・

・・・

・・・

Transform

processes

without any

exceptions

Chief executive for MUFG’s

digital transformation

Change agent for promoting

individual project toward MUFG’s

digital transformation

Syste

ms

(Pla

n a

nd d

evelo

pm

ent fo

r IT s

yste

ms)

Innovation Lab

Aim for “Frictionless” society by

integrating banking experience and

areas of mobility, etc.

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Business transformation through the use of digital technology

Expand

to group

entities

and overseas

30

30

• Transform customer interface channels and convert to “next-generation” outlets by digitalization with

accessibility of our services anytime and anywhere

Strategic investment

Digitalization

• UI / UX

“Simple & Speedy”

• Data driven marketing

• Omni-Channel

• Open Innovation

• Adopt technologies to

business process

User-friendly

Convenient

Speedy

Easy and Simple

Frictionless

Seamless operation and services

Location-free

Anytime, anywhere

Biometrics

identification

Voice

Real time

Intuitive

IoT AI

Outside At work At home

Logistics

Distribution

Manufacturing

Public

Energy Health care

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Reform customer interface channels

31

Achieve structural reforms through sophisticating business

operations and platform in the face of tightened international

financial regulations and changes in business environment

Financial discipline / network optimization Best allocation of human resources

• Manage Non-JPY balance sheet by

focusing more on profitability

• Strengthen capabilities for Non-JPY deposit

taking business

• Optimize asset portfolio

• Optimize strategic investment considering

financial discipline and restrictions on RWA

• Pursue inorganic growth opportunities in

strategic areas

• Rebuild most suitable delivery channels

• Reduce costs related to overseas network

by introducing hub-and-spoke model etc.

RWA・

Non-JPY

liquidity

Strategic

investment

Domestic and

overseas

network

Optimize business platform along with changes in

business environment Allocating human resources across group entities

• Accelerate human resource exchanges across group entities

and share evaluation methods in equivalent positions in order

to promote group-based activities

• As MUFG, enhance competitiveness of the talents with

professional skills including digital technology by establishing

MUFG Academy and initiating a group-based recruitment

• Launch a new organization that manages both those hired in

Japan and those in overseas markets to optimize best

allocation and strengthen global strategies

• Foster employees’ mindset that encourages everyone to

pursue the common goals by, for example, introducing

compensation system linked with MUFG group performance

Improve worthwhileness of working

• Enhance business processes to a more user-friendly one by

implementing digitalization strategy, which improves

productivity, brings additional values to our business and

contributes to capture new opportunities

• Achieve best mix of diversified human resources leveraging

individuals’ strengths regardless of job category, age, gender,

and hiring place

Reinforce base for sustainable growth on a global

basis through achieving structural reforms

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Initiative to improve productivity

RWA・ Non-JPY liquidity

Strategic

Investment

Domestic and

overseas network

32

32

Functional Realignment / Enhancement of group management Business Unit

Function Realignment Strengthen customer- and business- based approach

Establish a framework to provide highly-valued solutions

with diversifying and increasingly sophisticated customers’

needs

Rename the commercial bank (April 18)

Integrate operation

between Japanese

retail and SME

• Integrate the segment of Japanese retail

commercial banking and SME business

Strengthen global

approach to large

corporate business

• Reorganize Japanese large corporate and

global corporate segments respectively

• Each segment is managed globally

across geographical boundaries

Enhance expertize

of each function

• Consolidate and utilize specialist

personnel on a group basis

Highlight “MUFG” for commercial bank’s name

MUFG Bank, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Trust bank

MUFG

Commercial bank Securities

Developing a

“trust-oriented

consulting and

solution

business” MUKAM share

Corporate-

lending etc.

MUKAM share

Enhancement of group management

On top of efforts for improving efficiencies by each entity,

effectively utilize resources on a group basis

Centralize and improving efficiency of the functions of

our corporate center, back-office and IT systems

Commercial banking,

settlement, solution

business etc.

AM/IS, real estate,

pension, corporate

agency, inheritance

business etc.

Investment banking,

sales & trading, AM

business etc.

MUFG Re-Imagining Strategy - Building Anew at MUFG

- Reorganization of MUFG group management structure

33

Growth Strategy

34

26.1 26.1 27.7 31.2 32.6

43.2

0

10

20

30

40

FY14H1

FY14H2

FY15H1

FY15H2

FY16H1

FY16H2

182.9

417.6

469.5

0

100

200

300

400

500

End Mar 15 End Mar 16 End Mar 17

Asset balance*1 / no. of investment trust account*2

Investment products sales / income*1*3

(¥tn)

*1 Managerial accounting basis *2 Excl. investment trust account without balance *3 BTMU + MUTB MUMSS (excl. PB Securities)

(mm)

(¥tn)

Transaction no. of installment payment insurance

Wrap product balance (Incl. wrap fund) *1

(¥bn)

(thd)

• Steady progress for enhancing revenue from stock balance. Investment products sales slowed due to unfavorable economic environment, however, the trend has slightly turned around in FY16H2

Support wealth accumulation and stimulation of consumption for individual clients

– Promotion of shifts from savings to stable asset building

(¥bn)

0

50

100

150

0

1

2

3

FY14H1

FY14H2

FY15H1

FY15H2

FY16H1

FY16H2

Sales insurance annunities (LHS)

Sales equity investment trust/financial products intermediation (LHS)

Income from investment product sales (RHS)

24.5 26.5

25.1 25.8

80

100

120

20

30

End Mar 14 End Mar 15 End Mar 16 End Mar 17

Asset balance (LHS)

No. of investment trust account (RHS)

35

Contributing to the healthy consumer finance market

Taking related regulations/requirements into account, contributed

to the development of healthy bank card loan market

Review our current approach for bank card loans and take steps

such as following

Approaches

Requirements of

annual income

certificate

• From more than ¥2.0 mm to more than ¥0.5 mm

Advertising

policy

• Manage with consideration such as

Broadcasting volume and time of TV ad

Refrain from presenting standards for

annual income certificate submission

1.56 1.58 1.61 1.63

0.83 0.89 0.95

1.01

0.0

0.5

1.0

1.5

BTMU MUN ACOM ACOM's guarantee

End Sep 15 End Mar 16 End Sep 16 End Mar 17

(¥bn) (¥tn)

(¥bn)

342.5 371.6

403.2 435.2

0

100

200

300

400

500

End Sep 15 End Mar 16 End Sep 16 End Mar 17

*1 Managerial accounting basis

Support wealth accumulation and stimulation of consumption for individual clients

– Consumer finance / payments

Balance of BANQUIC (BTMU)*1

Profits in card business (MUFG)*1 Balance of unsecured loan, guarantee*1

278.3 284.5

150

200

250

300

FY15 FY16

36

• Enhance core businesses (lending and exchange, etc.) considering they are the sources of competitiveness for the commercial banking model

• Strengthen and expand fee businesses fully leveraging MUFG’s group-wide solution capabilities

Contribute to growth of SMEs

Contribute to customers’ growth by responding to the needs not only on their liability but also on asset, capital, and gross profit, etc.

Average lending balance (domestic)*1*2 Profits from inheritance /

M&A related business (BTMU)*1 Profits from AM business*1

Customers’ B/S

Asset Liability

Capital

Cash Borrowings

Net assets

Securities,

etc.

Customers’ P/L

Operating profit Gross profit

• Increase lending share to core customers

• Careful maintenance of customers’

funding needs based on business

succession

• Expand customer base

Enhance lending business

• Improved solution for diversified

succession types including those by non-

relatives

Support business succession

• Develop new products and services

• Expand customer base by MUFG group-

wide solution to varied needs

Enhancing solution ability for customers’ asset management needs

• Business intermediation across segments

• Cultivate and support growing companies

• Industry-academia collaboration through

investment in university-originated ventures

Cultivate and support growing companies

*1 All figures on a managerial accounting basis

*2 In BTMU domestic branches or offices for SMEs

18.1 15.8

0

5

10

15

20

FY15 FY16

14.3 14.4

0

5

10

15

FY15 FY16

(¥tn)

12.0

14.5

0

5

10

15

FY15 FY16

(¥bn) (¥bn)

37

• Increase our knowledge and MUFG’s group-wide business solution capabilities for diversified operational environment and business issues of each customers

Reform global CIB business model

– Japanese large corporation

Promote deal-creating business model Expand overseas business with global co-operating structure

Average lending (Global, BTMU)*2*3 Overseas profits from Japanese corporations (BTMU)*2

・ Promote PMI (post merger integration) transactions by providing

solutions to overseas acquired company

*1 Corporate Real Estate

*2 All figures are in managerial accounting basis

*3 Avg. lending balance to Japanese corporations of BTMU branches or offices for large corporate business in global basis

154.0 162.7

100

150

FY15 FY16

24.8 26.4

5

15

25

FY15 FY16

(¥tn) (¥bn)

Example: CRE*1 financial strategy proposal

Japanese Corp.

Business Unit

Global Banking

Business Unit

Domestic

offices

Overseas

offices

Head

office

Overseas

subsidiary

Customers MUFG

Customer x Region Increasing

needs of

real estate

strategy

Business

challenge

BTMU

MUTB

CRE*1 financial

strategy proposal

MUFG

Unify strategy

Secure fund for

new investment

Enhance capital

efficiency

Improve balance

sheet

・ Provide solutions to customers leveraging BTMU/MUTB’s

strength

38

Integrated operation in primary business

Case studies

• Strengthen business with global corporates by developing global coverage model and expanding integrated operation between banking and securities business

Global coverage model

Reform global CIB business model – Global corporate

Non-interest profits (Global corporates)*1

(¥bn)

• Mandated for Pan Asia Cross Border Pooling

by Vivendi, the top media company(July 16)

225.9 235.8

150

200

250

FY15 FY16

BTMU products

Securities (Capital markets)

Head of Global

Corporate

Japan / HQ

：Regional divisions / subsidiaries promoting products

Global alignment between coverage and products

Regional coverage

EMEA

Regional coverage

Asia

Regional coverage

Americas

*1 Managerial account basis. Local currency basis. Including fees, FX and derivatives.

Excluding KS and MUAH

Apr 16 Leveraged Capital

Markets

Bank

Securities

Apr 17

IG*2 + Non IG*2

Syndicated Loan

DCM

U.S.

Jul 17 Expand integrated operation model to EMEA and Asia

Syndicated Loan

DCM

ABCP

ABS

Exp

an

d

sco

pe

Acquisition finance for Abbott

MUFG supported Abbott’s acquisition of St. Jude with

bridge finance, bond issuance (Passive Book runner)

RMBS*3 Transaction for AMP (Issue Size: AUD750 mm)

MUFG Securities was mandated as a Joint Lead

Manager for the deal

MUFG provided comprehensive debt solutions for the

client, with BTMU serving as warehouse provider*4

*2 Investment Grade

*3 Residential Mortgage-Backed Securities

*4 Financing function which provides temporary funding for purchasing assets to be

utilized for originating securitized products

39

Custo

mer

Products

Retail

Corporates Investors

FXRates/Equity

Credit

BTMU MUS

C

(Cash/Deriv.)

(brokerage)

A

B

• In FY16, a healthy overseas performance has compensated for profit decrease in domestic market

• Move toward operational phase. Develop inbound/outbound business through globally integrated operations

MUFG One Global Platform Enhancing synergy between BTMU & MUS

FY15 FY16

Customers

London

Jul 16*1 －

Asia

（HK＆SGP）

Jul 16 *1 －

Tokyo

Nov 16 *1 －

NY

Sep 16 *1 －

Various products

Market access

Financial technology

Strong customer base

- Corporate, retail (BTMU),

investor(MUS)

Yen products supply

MUFG franchise

On-shore network

Local financial institutions

relationship (TH, PH etc.)

Emerging currencies

Access to world largest

capital market

Competency in solution

provision

Latest financial services

Cross Product

X

Cross Entity

X

Cross Region

A

B

C

Evolve sales and trading operations

*1 Integrated operations started in each region on the date shown

*2 Consolidated S&T gross profits of BTMU / MUTB / MUSHD.

Local currency basis

Asia 19%

¥472.4 bn

Asia 21%

¥475.1 bn (YoY +0.6%)

Americas

14% Americas

17%

EMEA

10% EMEA

13%

Japan

57% Japan

49%

Consolidated S&T gross profits*2

40

Index Business

Collaboration

Jointly develop smart-β indices to enhance investment product sales and provide to asset managers

*1 Hedge fund *2 Fund of Hedge Funds *3 Private equity *4 Investment funds established and managed under the EU regulations *5 Mutual fund based on the 1940

Investment Company Act *6 Sum of HF・PE・Investment funds (40Act etc) administration *7 Asset under administration

*8 Alternative Fund Services *9 Current MUFG Capital Analytics, LLC *10 Current MUFG Investor Services(US), LLC *11 Asset under management

*12 Aberdeen Asset Management merged with Standard Life Plc on Aug 14th 2017 *13 AuM includes insurance assets

Global IS to enter into new phase of profit growth

Develop global asset management and investor services operations

Balance of global IS*6 (AuA*7) ($bn)

0.2 0.3

0.6

1.0

1.2 1.2

0.0

0.5

1.0

1.5

End Mar 12 End Mar 13 End Mar 14 End Mar 15 End Mar 16 End Mar 17

Affiliation and collaboration of global AM

Balance of AuM from overseas investors (MUTB)

Affiliates with

stake holding

AuM*11

capital ratio Products

*12

¥94 tn

6%*13

Equity / Bond (Global, Emerging,

Asia), Real estate, etc.

¥14 tn

15%

Equity / Bond (Australia, Global),

Infrastructure, Real estate

¥2 tn

33% Equity / Bond (China)

（As of end Mar 17）

• Global IS ： Provide a full lineup of fund administration services for global investment managers and enter into new phase of profit growth • Global AM ： Consider new inorganic investments. Accelerate the index business and expand the distribution channel

(¥tn)

34

128 157

251

372

500

0

100

200

300

400

500

600

End Mar 13 End Dec 13 End Aug 14 End Mar 16 End Aug 16 End Jan 17

Acquired Butterfield

Acquired Meridian

Acquired UBS AFS*8

Acquired Capital Analytics*9 Acquired Rydex Fund Services*10

Enter into new

phase of profit

growth by expanding

services for global

asset managers

Provide full lineup of fund

administration services worldwide

Service enhancement

Cost reduction

Asia EMEA

Full lineup service

US

HF*1 FoHF*2 PE*3

40 Acts*5 UCITS*4

Topline increase

41

254.8 246.0

125.6 134.2

123.3 143.8

503.7 523.9

0.0

100.0

200.0

300.0

400.0

500.0

FY15 FY16

Transaction banking gross profit*1

Trade finance*2 balance*1 Avg. balance of non-JPY deposits*1

3.1

3.8

0

2

4

End Mar 16 End Mar 17

25.5

29.0

10

20

30

FY15 FY16

(¥tn) (¥tn)

Further reinforce transaction banking business

EMC*3 balance・settlement no*1

2.0

3.1

4.4

443

452 458

400

410

420

430

440

450

460

1

2

3

4

5

FY14 FY15 FY16

(¥tn) (mm)

EMC*3 balance (LHS)

Settlement no. (RHS)

Over- seas

Dome- stic

Over- seas

(¥bn)

EUROMONEY cash management survey, global ranking

2013 2014 2015 2016

#20

#15

#10

#7

Domestic Business

Japanese Overseas Business

Non-Japanese Business

*1 Figures are on a managerial accounting basis and local currency basis

*2 Trade finance: Import / export LC and documentary collections, transactions under FI trade credit limits, open account trade finance, stand-by LC, bank

guarantee

*3 EMC: Electronic Monetary Claim

• The competitiveness of transaction banking products has been steadily enhanced under the COMSUITE brand. Sales are also showing steady growth

• The increase in non-JPY deposits far exceeded the initial plan. We are also seeing steady growth in such basic client base indicators as the overseas trade finance balance and domestic settlement numbers

42

Strengthen commercial banking platforms in Asia and the United States

– U.S. Business

• Focus on increasing fee income/deposit and cost management to improve profitability and generate sustainable growth

Consolidated results of Americas*1

Client solutions

Products per client in Wholesale Bank*2

Gathering deposits

(#) (#)

*1 Managerial accounting basis. Local currency basis. Business operations in the U.S.,

Canada and Latin America belonging to BTMU consolidated Global Banking Group

*2 U.S. Wholesale Banking clients that have been covered for the entire analysis period.

Deposit-Only clients removed

(¥bn) FY16

FY17

Q1 YoY

1 Gross Profits 698.5 166.0 (7.1)

2 Interest Income 471.7 121.9 8.4

3 Non- Interest Income 226.7 44.1 (15.5)

4 Operating Income 270.8 51.6 (11.4)

5 Average Lending Balance (tn) 19.9 19.7 0.1

6 Average Deposit Balance (tn) 16.6 17.2 1.0

Improving efficiency

Other important business

considerations

Third party spend

Resource location strategy

Organization simplification

• Spans & layer recalibration - reduce number

of managers

• Increase centralization of certain functions

• Increase ratio of workforce distributed in low

cost geographies

• Offshoring / outsourcing

• Reduce business consulting spend

• Six Sigma process reengineering

• Rationalize certain non-core businesses

• Branch consolidations, self service banking

Offer online-banking services with a strategically

located physical presence across the U.S.

2.29 2.40

2.55 2.69

2.99

2.0

2.5

3.0

0

150

300

450

600

Apr 12 toMar 13

Apr 13 toMar 14

Apr 14 toMar 15

Apr 15 toMar 16

Apr 16 toMar 17

# Clients (LHS) Products / client (RHS)

43

Strategic objectives*1

*1 All figures are based on Thai GAAP *2 Loans to customers net of deferred revenue *3 Year on Year

(THB bn)

FY16 (End Dec 16)

FY17 H1 (End Jun 17)

Change

Lending balance*2 1,448.9 1,475.5 26.6

Non-interest

income 29.5 15.1 0.9*3

CASA

balance 583.9 580.5 (3.4)

Strengthen commercial banking platforms in Asia and the United States

– Krungsri

(Source) Company data.

*4 Lending balance is sum of loans to customers, accrued receivables and deferred revenue

BTMU Bangkok branch was integrated to KS with total loan of THB 232.7 bn in Jan 15

(THB tn)

Lending balance comparison*4 (%)

NPL ratio comparison

1

2

3

4

End Dec13

End Dec14

End Dec15

End Dec16

End Jun17

KRUNGTHAI

BANGKOK

KASIKORN

SIAM COMMERCIAL

KRUNGSRI0

1

2

End Dec13

End Dec14

End Dec15

End Dec16

End Jun17

KRUNGTHAI

BANGKOK

SIAM COMMERCIAL

KASIKORN

KRUNGSRI

• Support Thai corporate customers in their overseas expansion leveraging MUFG’s global networks and capabilities

• NPL ratio maintained lower level

Major synergy transactions

Support cross border business of Thai Corporates

Provided financial support to

Central Group for its M&A deal for

Big C Vietnam

Supported Thai Union Group in

international investment in US

seafood restaurant chain

Red Lobster

44

44

Companies*1

Customers Companies MUFG

Enjoy improved/

secured services

Develop new

businesses

Quick services

deployment

API

Provision of “MUFG APIs”

• MUFG group companies open their

APIs to external parties to deliver

innovative services

MUFG

Group

New

services

New

services

New

services

MUFG

APIs

Colla

bora

tion

Service offering

（from Apr 17）

*1 Companies developing or considering to develop businesses by utilizing

Bank API (As of end Apr 17)

Under

consideration

ICT strategy

– Progress in open innovation

Evolutional settlement processing

Blockchain

Participation in Ripple’s global settlement network

• The only Japanese bank participating in

domestic and overseas councils

• Contribute to network rulemaking as first

Asian member of global advisory group

*2 A global advisory group of financial Institutions which contributes

to defining rules, standards and governance for cross-border

payments

Global Payments Steering Group*2

MUFG, BoA, CIBC, RBC, Santander, StanChart, Westpac

• Implement quick, secure and efficient settlement

• Aim for commercial use, following pilot tests in FY17

• Bi-directional communication

Sending

Bank

Beneficiary

Bank

Ripple settlement network

Messaging

Settlement

Messaging

Settlement

• Real-time settlement utilizing blockchain

45

Major initiatives (from FY15H2)

Venture-affiliation website

A website for setting up partnerships

with promising startups

Accelerator Program

Select a few of distinguished startups

and helps them launch business

Hackathon

External developers compete to

create innovative apps, with

demonstration-use banking APIs

AI (Deep ｌearning) Other initiatives and results

Collaboration with Alpaca

• Alpaca won second prize in MUFG’s

“Accelerator Program” held in Aug 16

• Leveraging its strengths in deep learning,

involved in multiple projects at MUFG

Foreign ccy deposit Trading Online trade

Provide chart

image recognition

service

Enhance individual

investors’ analysis

capabilities

Offer support tools

(Market forecast

utilizing AI)

Aim to provide

deposit product

using an AI-based

investment decision

assistant

• Establish market

forecast model

• AI trader

Employ deep

learning to realize

automated and

more efficient

trading

• AI-based analysis has reached the commercial phase

- Radically enhances customer convenience

- Improves operational efficiency while reducing cost

Results from collaboration with MUFG

Created AI-based financial analysis

for individual investors

Operated a virtual coin scheme using

the blockchain on a trial basis

Developed a dedicated MUFG

website for promoting open innovation

Developed apps for assisting in the

selection of investment trusts

ICT strategy

– Progress in open innovation

(Jibun Bank)

• MUFG employs its facilities around the globe to take part in multiple projects aimed at commercializing

innovative solutions

Key projects undertaken at facilities around the world

ICT strategy

- Ongoing projects in Japan and overseas

46

Japan

Japan Exchange Group

• Participating in JPX proof-of-concept to test security

transaction

MUFG

• Planning of new MUFG coin

Blockchain

United States

Coinbase

• Investment in virtual currency exchange (Coinbase)

Chain

• Testing digital promissory note with Chain

Blockchain

Singapore

Hitachi Group

• Testing digital check with Hitachi Group

IBM

• Digitization of system documents with IBM

• Economic sanction check

Blockchain

RegTech

Global

R3

• Participating in DLG (Distributed Ledger Group) lead by R3,

with 70+ global financial institutions

Ripple

• Participating in consortiums in both domestic and overseas

Blockchain

Tokyo

SF & NY

SGP

47

Capital Policy

48

¥7 ¥7 ¥6 ¥6 ¥6 ¥6

¥7 ¥9 ¥9 ¥9 ¥9

¥7 ¥5

¥6 ¥6 ¥6 ¥7

¥9

¥9 ¥9 ¥9 ¥9

0

5

10

15

20

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17(forecast)

Year-end dividend

Interim dividend

25.4%

950.0

¥18

Result and forecast of dividend

¥14

Dividend per

common stock

23.0% 40.6% 30.0% 25.2%*1 22.0% 23.4% - Dividend

payout ratio

636.6 388.7 583.0 690.6*1 852.6 984.8 (256.9) Profits attributable

to owners of parent

(¥bn) (¥)

24.6%

1,033.7

*1 FY11 figures do not include one-time effect of negative goodwill associated with application of equity method accounting on our investment in Morgan Stanley

Dividend forecast

26.3%

951.4

• FY16 dividend is ¥18 per common stock. FY17 dividend forecast is ¥18 per common stock

26.4%

926.4

¥12 ¥12 ¥12 ¥12 ¥13

¥16

¥18 ¥18 ¥18

49

MUFG’s

Corporate

Value

Maintain solid

equity capital

Strategic investments for

sustainable growth

Enhance further

shareholder returns

• Enhance further shareholder returns and make strategic investment for sustainable growth while maintaining solid equity capital

4

9

Capital policy

50

• Repurchased own shares in order to enhance shareholder returns, improve capital efficiency and conduct capital management flexibly

• Established a policy regarding cancellation of own shares and cancelled all of the shares repurchased in FY17H1

Outline of repurchase and cancellation of own shares

FY14 FY15 FY16 FY17H1

Type of shares

repurchased

Ordinary shares

of MUFG

Ordinary shares

of MUFG

Ordinary shares

of MUFG

Ordinary shares

of MUFG

Aggregate amount of

repurchase price

Approx.

¥100.0 bn

Approx.

¥200.0 bn (Approx. ¥100.0 bn

each on two occasions)

Approx.

¥200.0 bn (Approx. ¥100.0 bn

each on two occasions)

Approx.

¥100.0 bn

Aggregate number of

shares repurchased

Approx.

148.59 mm shares

Approx.

232.85 mm shares

Approx.

332.85 mm shares

Approx.

141.15 mm shares

(All of the shares have

been cancelled)

(Ref) FY14 FY15 FY16

Total payout ratio 34.2% 47.2% 47.9%

(Ref) As of July 31, 2017

Total number of issued shares (excluding own shares): 13,321,143,660 shares

Number of own shares held by MUFG: 706,551,260 shares

(Consolidated)

Outline of repurchase and cancellation of own shares

Cancellation of own shares

Retain own shares of approximately 5% of the total number of issued shares at maximum and

cancel the shares exceeding the threshold

51

9.20

4.29

2.82 2.79 2.66 2.52 2.49

51.8%

22.8%

19.7% 17.9%

16.6% 16.2%

0

5

10

EndMar 02

EndMar 08

EndMar 14

EndMar 15

EndMar 16

EndMar 17

EndJun 17

FY20H2

• Our basic policy is reducing the amount of equity holdings considering the risk, capital efficiency and global financial regulations

• Approx. ¥29 bn*1 equities were sold in FY17Q1

*1 Sum of BTMU and MUTB

*2 Under Basel 2 basis until end Mar 12 (consolidated)

Ratio of equity holdings over Tier1 capital*2

Approx.

10%

Acquisition price of domestic equity securities in the category of ‘other securities’ with market value (consolidated)

Reduction of equity holdings

(¥tn)

Aim to reduce our equity

holdings to approx. 10%

of our Tier1 capital towards

the end of the next mid-term

business plan

Reduction of equity holdings

Selling

amount

Net gains

(losses) Acquisition

cost basis

FY15 ¥211 bn ¥117 bn ¥94 bn

FY16 ¥267 bn ¥149 bn ¥118 bn

FY17

Q1 ¥49 bn ¥29 bn ¥20 bn

Total ¥527 bn ¥295 bn ¥232 bn

Ref. Approx. selling amount of equity holdings

52

from Mar 19 from Mar 22

TLAC requirement 16.0% 18.0%

As of end Jun 17 15.9%

(Note) TLAC ratio estimation is calculated as follows, which is based on our total

capital ratio as of end Jul 17

TLAC Ratio =Total capital ratio (15.93%) － Capital conservation buffer

(2.5%) －G-SIB surcharge (1.5%) + Contribution of Deposit

Insurance Fund Reserve (2.5%) + TLAC eligible debt

(1.37%) ± Other adjustments, etc.

Ref. minimum TLAC requirements Ref. estimated TLAC ratio*3

Best capital mix among CET1, AT1 and Tier2

Capital management

– The best capital mix and TLAC compliance

• Capital management with utilization of AT1 / Tier 2 and controlling CET1 at necessary and sufficient level. Aiming for the right balance between capital efficiency and capital adequacy in qualitative and quantitative aspects

MUFG is a primary

funding entity, which shall be

designated as a resolution entity

in orderly resolution under

the SPE strategy*2

High

Cost

Low

CET1

AT1

Tier2

(Image)

2.0%

Target level based on minimum capital requirements from March 19

Senior

Debt

TLAC Eligible Senior Debt

US$17.5 bn SEC registered notes issued in total since

first issuance as Japanese bank holding company in

Mar 16*1

1.5%

Basel III Eligible Tier2 Sub Notes

¥840 bn issued since Jun14*1

Basel III Eligible AT1 Perpetual Sub Notes

¥950 bn issued since Mar 15*1

*1 Accumulated amount as of end Jul 17

*2 Single Point of Entry strategy: to resolve a financial group at the level of its ultimate parent, rather than the operating companies at subsidiary level in financial difficulty by the single national

financial authority

*3 Figure contains 2.5% portion of RWA, which is expected to be counted as TLAC after Mar 19 based on the prospect that the relevant authorities agree that the Japanese

Deposit Insurance Fund Reserves satisfy as credible ex-ante commitments specified in TLAC Term Sheet. This will add another 1.0% of RWA after Mar 22, which will

increase the estimated TLAC ratio by 1.0%. Since TLAC requirements in Japan have not yet been finalized, actual TLAC ratio may be different from our estimation

53

4.0

8.5

5.0

405

345

90

400

450

100

FY17

FY16

FY15

FY14

Senior unsecured

Tier 2

AT1

Global market Domestic market

MUFG issuance track record

(¥bn) (US$bn)

MUFG / BTMU / MUTB AT1, Tier2 call / redemption schedule*2

FY17 - FY27 (¥bn)

*1 Total of public issuance

*2 Figures are as of end Jul 17 assuming that all callable notes are to be redeemed on its first callable date. AT1 and Tier2 contain Basel II Tier1 preferred securities

and Basel II Tier2 sub notes respectively

*3 Figures are as of end Jul 17 assuming that all callable notes are to be redeemed on its first callable date. Figures are all converted into US$ with actual exchange

rates as of end Jul 17 (¥110.35/$). Excluding structured bond and notes issued by overseas branches and subsidiaries

MUFG / BTMU / MUTB senior unsecured bond redemption schedule*3

FY17 – FY27 (US$bn)

Capital management

– MUFG issuance track record in both domestic and global markets and redemption schedule

150

222

330

100

250

150

300

150 190

87

270

499

240

63

112

161

50

0

250

500

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27

AT1 Tier2

4.6 4.0 3.6

1.2 2.1

0.8 1.4 1.1

0.1

1.0 1.0 1.5

1.6 0.3

4.0 4.0

3.0 0.5 3.0

2.0 1.0

0

1

2

3

4

5

6

7

8

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27

MUFG

MUTB

BTMU

FY17-FY18 total

・US$ 10.6bn

54

Corporate Governance

55

55

Outside directors Board structure

• Considering outside directors’ areas of specialty and the diversity of their backgrounds, increased the number of

outside directors from Jun 17

Name Current position and responsibilities

at the Company

Expertise

1 Hiroshi

Kawakami

Outside director

Nominating, Compensation, Audit ● - - -

2 Yuko

Kawamoto

Outside director

Nominating, Compensation, Risk (Chair) - ● - -

3 Haruka

Matsuyama

Outside director

Nominating, Compensation (Chair) - - - ●

4 Toby S.

Myerson Outside director - - - ●

5 Tsutomu

Okuda

Outside director

Nominating (Chair), Compensation, Risk ● - - -

6 Yukihiro

Sato

Outside director

Audit ● - ● -

7 Tarisa

Watanagase Outside director - ● - -

8 Akira

Yamate

Outside director

Audit (Chair) - - ● -

Reelected

Nominating: Nominating and Governance Committee member Audit: Audit Committee member

Compensation: Compensation Committee member Risk: Risk Committee member

＜XXXX＞

＜XXXX＞

Numbers of the Board members

Ratio

Co. with a Board of Corporate Auditors

Co. with Three Committees

(Candidates)

Non-executive

director

Independent

outside directors

8 out of 18

(44.4%)

10 out of 18

(55.5%)

High independence

Corporate governance - Strengthening oversight function by outside directors

Independent

Independent

Reelected

Independent

Reelected

Independent

Reelected

Independent

Reelected

Independent

Reelected

Independent

Independent

Newly elected

Newly elected

Fin

an

ce

Acco

un

ting

La

w

Bu

sin

ess

Ad

min

.

15 15 17 17 18

2

4 6 7

8

2013 2014 2015 2016 2017

Total o/w outside directors

56

56

Tarisa Watanagase

Former Governor of the Bank of

Thailand

Independent Director, The Siam

Cement Public Company Limited

Experience

More than three decades of experience

as central banker

Professional knowledge in the areas of

monetary policy and economics

• Strengthen corporate governance further by appointing highly experienced executives under an

increasingly globalized and diversified business environment

• New outside directors are a corporate law professional and a former central bank governor

New outside directors Globalization of the Board of Directors

• Approximately 40% of MUFG business bases are located

overseas

• The appointment of outside directors from Asia as

MUFG’s second mother market and North America

strengthens further the supervisory function of the Board

of Directors

Global

Banking

Div. 40%

Foreign

Institutions,

etc 38%

Overseas

employees

41%

*1 As of end Mar 17

Corporate governance

- Globalization of the Board of Directors

Share ownership*1 Net operating profit of

customer segments*1 Group employees*1

Toby S. Myerson

Former partner of Paul Weiss

Chairman and CEO of Longsight

Strategic Advisors LLC

Outside director of MUAH and MUB

Experience

More than three decades of experience

as lawyer

Professional knowledge in the areas of

the US corporate law and global M&A

57

• All committees under the Board of Directors are chaired by outside directors

• To ensure stable management succession, the Nominating and Governance committee takes measures to

enhance top management appointing process

MUFG Governance structure Chairpersons of committees under the Board of Directors

Ex

ec

utio

n

Ove

rsig

ht

C-Suite Planning & Admin. Div.

Officers in charge Business Groups

Global Advisory Board

Executive

Committee

U.S. Risk

Committee*1

Risk Committee

Committees under

Companies Act

Compensation

Committee

Audit Committee

Nominating and

Governance Committee

Board of

Directors

General Meeting of

shareholders

Nominating and Governance Committee Tsutomu Okuda MUFG outside

director

Compensation Committee Haruka Matsuyama MUFG outside director

Audit Committee Akira Yamate MUFG outside director

Risk Committee Yuko Kawamoto MUFG outside director

U.S. Risk Committee Christine Garvey MUAH outside director

Activities of Nominating and Governance Committee

• Identifies ideal traits for key managerial positions and

formulates standards to evaluate them, with outside

directors taking initiative

• Appoints top management leaders; to this end:

Conducts face-to-face interviews with multiple

candidates screened by the execution team via a 360-

degree evaluation, with the aim of securing accountability

To ensure stable management succession, identifies the

most promising candidates at earlier stages in their

careers, with outstanding individuals being referred to

outside directors, who, in turn, provide the execution

team with advice on how they should be trained *1 Established to comply with U.S. Enhanced Prudential Standard

Corporate governance

- Structure

*2 The chairpersons will be appointed in each committee

following the AGM in Jun 17

Evaluation framework for the BoD’s operations

• Improving the BoD’s operations in the PDCA cycle

Strengthening the function of the BoD

Corporate governance

- Strengthening the function of the Board of Directors

Interviews with

directors and

reporting by external

consultants

Deliberation by

the BoD

Deliberation by the

Nominating and

Governance

Committee

• MUFG takes measures to strengthen the function of the Board of Directors (“the BoD”), such as Independent Outside

Directors Meetings and reviewing agendas of the BoD meetings, leading to more substantial and intensive discussion

• Introduced a framework to regularly evaluate the BoD’s working practices

58

Independent Outside Directors Meetings

• BoD meetings are followed by Independent Outside Directors

Meetings attended only by outside directors where the operations

of the BoD and committees are deliberated

• Conclusions are reported to the chairperson and the president by

a lead independent outside director

Improvement of the BoD meeting

• Focus more on crucial issues by reviewing / optimizing agendas

Activities of outside directors

• In addition to the BoD meetings and statutory committee

meetings, the following meetings are held to discuss MUFG’s

strategies and challenges going forward

Activities Contents

Strategic Off-

site Meeting

Incorporating outside directors’ perspectives

• Outside directors and Group executives meet on

holidays to intensively discuss such themes as

“MUFG Re-Imagining Strategy” and “Global

human resource strategies”

Discussions

with MUAH

outside

directors

Stepping up information gathering

• MUAH outside directors, who are well-versed in

policies of U.S. authorities, bring their input into

discussions on corporate governance

MUFG

Investors Day

Face-to-face dialogue with institutional

investors

• Outside director Tsutomu Okuda*3 gives a

presentation and leads Q&A sessions on MUFG’s

corporate governance

MUFG

Management

Meeting

Communication with execution team members

• All Group directors and executives meet and

discuss Group policies and the challenges

• Outside directors give presentations to bring their

insights

Before

(FY14*1)

After

(FY16*2)

Number of meetings held 14 7

Number of agenda items 210 Approx. 80

Avg. duration of regular BoD meetings 2.5 hours 5 hours

Volume of pages included in meeting

materials (annual total) Approx. 1,200 Approx. 300

*1 Jun 14 to Mar 15

*3 Lead independent outside director,

Chairperson of Nominating and Governance Committee

*1 Jun 14 to Mar 15

*2 Jun 16 to Mar 17

• Performance-based stock compensation plan in order to incentivize group-wide management that focuses

more on the mid- to long-term improvement of financial results and stock price

• Transit from existing stock compensation type stock option (issued 9 times) to the stock compensation plan

using a trust structure

Corporate governance

- Performance-based stock compensation plan for executives

Outline

• Designed based on performance share plans and

restricted stock plans in the U.S.

• Corresponding to the principle of Japan’s Corporate

Governance Code “incentives such that it reflects mid- to

long-term business results and potential risks, as well as

promotes healthy entrepreneurship”

• MUFG shares, acquired and managed by trustee in

advance, are to be delivered in accordance with the rank

and the financial achievements

• The way to measure financial achievements is as follows

Concept

Re

stric

ted

sto

ck p

lan

Linked contents Share

delivery Indices

Linked to

financial

results

(Performance

share plan)

Linked to mid- to long-

term improvement of

financial results

EPS growth ratio

Delivered to

all directors

when mid-

term business

plan ends

Linked to single year

improvement of

financial results

Growth of indices below

are considered

1) Consolidated net

business profit

2) Consolidated net

income

3) Market capitalization

Fixed

（Restricted

stock plan）

Shares are to be

delivered in

accordance with the

rank

Delivered to

retiring

directors

Linked to mid- to

long-term

improvement of

financial results

• EPS growth ratio, one of financial targets

in MUFG mid-term business plan

Linked to single

year

improvement of

financial results

• 1) Consolidated net business profit,

2) Consolidated net income and

3) Market capitalization

• Considering both market environment and

competitors, evaluated by achievement

level compared with peer banks

59

60

Appendix

61

Retail banking 225.3 14%

Global banking 482.5 31%

Global markets 369.1 24%

Appendix: Outline of results by business segment

(¥bn)

Net operating profits by segment*1

FY16 ¥1,395.8*2 bn

Global banking segment accounted for

40% of total customer segments*3

0

1,200

1,300

1,400

1,500

1,600

FY15 FY16

Retail

banking

(61.3) Japanese

corporate

banking*4

(38.1)

Global

banking

24.4

IS/AM

(9.3)

Global

markets

(58.4)

Others

(12.5)

1,551.0

1,395.8

(¥bn)

(Consolidated)

Investor services/

asset management

60.9

4%

*1 All figures are in actual exchange rate and managerial accounting basis

*2 Including profits or losses from others

*3 Net operating profit of Global banking / net operating profit of total customer segments

*4 Excluding overseas business with Japanese corporates

Japanese corporate

banking*4

422.2

27%

62

1,100

1,150

1,200

1,250

FY15 FY16

72.1 70.2 57.7 49.3

76.5 76.3 75.9 79.8

253.9 266.4 264.7 277.1

30.2 29.2

30.1 28.5

92.8 72.0 62.1 65.5

69.5 52.0

49.4 61.6

9.0

9.0

9.2 10.0

42.6

37.6

35.0

42.3

646.6

612.7

584.2

614.1

0

200

400

600

FY15H1

FY15H2

FY16H1

FY16H2

(¥bn) (¥bn)

Inheritance

& Real estate

Investment product

sales

Loans

Yen Deposit

Others

Securities*3

Yen

Deposit

(35.3)

Loans

(3.0)

Consumer

finance &

Card

21.5

Fees*2

(0.8)

Investment

product

sales

(37.2)

Inheritance

& Real estate

1.2

Others

(2.9)

Securities*3

(10.4)

*1 All figures are in actual exchange rate and managerial accounting basis *2 Transfer, ATM, etc. *3 Fees from stock / bond sales, etc.

Appendix: Historical outlook in Retail Banking

Gross profits*1 Change in gross profits*1

Fees*2

Consumer finance

& Card

(Consolidated)

63

1,000

1,020

1,040

1,060

1,080

1,100

FY15 FY16

Trust*2

Securities

CIB*4

Settlement

Deposit

Lending

Others*3

Lending

(8.6)

Deposit

(12.7)

Settlement

(0.1)

CIB*4

(8.0)

Securities

(5.0)

Others

(13.7)

Overseas*3

Exchange

Rate*5

(23.3)

Trust*2

0.8

*1 All figures except for overseas are in actual exchange rate and managerial accounting basis

*2 Real estate brokerage, transfer agency business, etc.

*3 Local currency basis. Difference with actual exchange rate is included in “Others”

*4 Structured finance, syndicated loan, derivatives, etc.

*5 Exchange rate impact caused by overseas business with Japanese corporates

Change in gross profits*1 Gross profits*1

Appendix: Historical outlook in Japanese Corporate Banking

Overseas*3

6.3

126.0 125.1 121.0 121.6

24.9 25.8 20.1 17.9

93.0 92.9 91.6 94.1

134.7 156.9

134.1 149.6

95.6 95.4

97.8 99.5

48.7

57.4

47.3 53.8

28.8

28.9

28.9 29.6

(11.2) (26.2) (39.3) (35.0)

540.5

556.2

501.4

531.0

(100)

0

100

200

300

400

500

600

FY15H1

FY15H2

FY16H1

FY16H2

(¥bn) (¥bn)

(Consolidated)

64

( 21.8) (25.4) (23.4) (31.5)

28.1 40.9 38.4 35.9

61.4 62.1 67.4 67.0

49.2

60.3 47.5 51.6

110.2

120.1 135.8 145.3

(50)

0

50

100

150

200

250

300

FY15H1

FY15H2

FY16H1

FY16H2

Americas

Asia

KS

EMEA

Others

¥631.0 bn ¥676.8 bn ¥691.4 bn

YoY

+¥10.3 bn

¥227.1 bn ¥257.9 bn ¥265.7 bn

YoY

+¥23.2 bn

FY15

H1

FY15

H2

FY16

H1

*1 Local currency basis. Each breakdown is before elimination of duplication, and excludes other gross profits

*2 After adjustment of duplication between regions

Gross profits by region*1 Operating income by region*1

Appendix: Historical outlook in Global Banking

– Gross profits & operating income by region

(¥bn) (¥bn)

FY16

H2

¥700.0 bn ¥268.2 bn Gross

profits*2

Net

operating

income*2

(Consolidated)

69.6 87.3 88.3 88.1

127.0 132.8 138.3 145.4

121.1 122.1 122.3 118.0

328.3

341.3 362.6 373.4

65% 64% 64% 64%

35% 36%

36% 36%

0

100

200

300

400

500

600

700 Americas

Asia

KS

EMEA

Non-interest

Interest

65

34.2 36.8 41.6 45.2 1.6 1.8 1.4 1.5 29.1

43.9 40.3 36.4 4.7

4.8 5.0 5.1

0

100

200

300

FY15H1

FY15H2

FY16H1

FY16H2

Loans Deposits

Fees & Derivatives Forex

67.9 65.5 64.4 62.0

8.8 8.7 8.1 6.2

97.1 100.7 106.2 111.4

29.4 32.4 34.0 33.7 15.0 15.5 15.8 16.1 30.0 32.0 32.2 34.1

0

100

200

300

FY15H1

FY15H2

FY16H1

FY16H2

Non-interest (KS) Forex

Fees & Derivaties Interest (KS)

Deposits Loans

44.9 49.7 57.8 60.0

6.4 7.2 9.2 10.4

162.0 163.3

164.1 170.2

69.1 67.0

78.1 66.4 3.8 5.6

4.5 3.7 41.6 47.5

48.3 62.8

0

100

200

300

FY15H1

FY15H2

FY16H1

FY16H2

Non-interest (MUAH) Forex

Fees & Derivatives Interest (MUAH)

Deposits Loans

Interest

Non-

interest

Interest

Non-

interest

Interest

Non-

interest

*1 Local currency basis. Each breakdown is before elimination of duplication and excludes other gross profits

Appendix: Historical outlook in Global Banking

– Breakdown of gross profits

Americas*1 Asia*1 EMEA*1

(¥bn) (¥bn) (¥bn)

(Consolidated)

66

6.8 6.8 7.5 6.9 8.7

6.8 9.1

7.6

4.3 4.4 4.4

4.2 4.6

3.8

4.9 4.5

13.1 12.7 13.2

12.4

13.7

11.4

13.9

12.8

17.4 18.3 18.2

18.4

19.7

17.4

20.0

19.7

41.5 42.2 43.3

41.8

46.7

39.4

47.9

44.6

0

10

20

30

40

Americas Asia KS EMEA

3.3 3.3 3.6 3.3 4.1 3.2 4.6 3.7

3.5 3.6 3.6 3.4 3.7 3.1

3.8 3.5

6.9 6.8 7.5 7.1 8.4

7.1

9.2 8.5

14.9 15.7 15.8 16.0

16.2

14.3

16.9

16.7

28.6 29.5

30.5 29.9

32.4

27.6

34.5

32.5

0

10

20

30

40

50

Americas Asia KS EMEA

(¥tn)

Local currency basis

Actual exchange rate basis

Actual exchange rate basis

Local currency basis

(¥tn)

FY15

H1

FY15

H2

FY16

H1

FY15

H1

FY15

H2

FY16

H1

FY16

H2 FY16

H2

Appendix: Historical outlook in Global Banking

– Loans and deposits by region

Average loan balance by region Average deposit balance by region

(Consolidated)

67

160

170

180

FY15 FY16

32.4 31.8 29.8 28.6

9.8 9.5 9.4 10.3

22.3 19.2

18.6 17.9

13.3 15.2

17.3 24.9

10.2 8.6 7.7

8.9

87.9 84.3

82.6

90.5

0

20

40

60

80

100

FY15H1

FY15H2

FY16H1

FY16H2

Pension

Global asset

administration*2

Other trust

business

Investment trust

administration

Consolidated gross profits*1

(¥bn)

Change in gross profits*1

(¥bn)

Pension

(5.8)

Investment

trust

administration

0.4

Investment

trust

management*4

(5.0)

Global asset administration*2

13.6

Other trust

business

(2.1)

Investment trust

management*3

（Mitsubishi UFJ KOKUSAI AM）

(3.6)

Appendix: Historical outlook in investor services / asset management

（Accounting

method change）

(1.4)

(Consolidated)

*1 All figures are on actual exchange rate and managerial accounting basis. Profits of the Master Trust Bank of Japan, Ltd (MTBJ) are split into each

business section

*2 Services provided under the “MUFG Investor Services” brand, custody and fund administration services, etc.

*3 Investment trust management profits for FY15H1 was the sum of the figures of before and after the merger of Mitsubishi UFJ KOKUSAI AM

*4 Following the 2 AM companies merger, accounting method of commission research cost has been unified to subtract it from gross profit instead of posting it

as an expense. Gross profits of this business in FY16 was down ¥3.6 bn from FY15, excluding impacts from this accounting method change